Glenn Beck (42:22)
Oh, cut seven, please. Want to bring you greetings as well from a nation that is in crisis. I'm not going to sugarcoat the gravity of what we face right now in the United States. States. This is the most significant threat to American democracy since the Civil War. Donald Trump in our country is trying to end our democracy. Unbelievable. We are not on the verge of a totalitarian takeover. We are in the middle of it. He is trying to seize control of our courts, of our law enforcement, of our media, of our elections. His goal is oligarchic capture. Okay, so this is what you do if you believe in a, in a global system. You go over and you talk to the people on the other side and you say, we're in a civil war. We are in the middle of a hostile takeover. We need your support. You don't, you don't have a conversation like that in, in front of a group of political people over in Europe. I mean, that is shameful. Absolutely shameful what he's done and just a lie. An out and out lie. 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So you know, whether it's your first pair or your fifth, you're going to find something that fits you and you're going to love them. Right now get 10% off@tecovus.com Beck sign up for the email and the text. 10% off@t e c o v a s.com Beck to covis.com Beck see site for details. Sam crank the game. Glam Back is on. Glam. The fusion of entertainment, enlightenment and empowerment. This is the Glenn Beck Program. Hello America. Welcome to the Glenn Beck Program. I want to talk to you about the Federal Reserve. Oh my gosh, Glenn, could you really, really? Because that sounds so exciting. I know, I know, I know it sounds boring as snot, but there is something really important to understand about something. The Federal Reserve, what a shock. Has lied to us. This whole thing has been a lie. Why are you paying higher interest rates? Why? You're paying higher interest rates to fight inflation, correct? What the. When they, when the Federal Reserve raises the interest rate, that means it takes more money out of your pocket. And they, they're supposed to take that money and burn it, destroy it. So we had like two and a half trillion dollars we had to suck back in. And that's why we have high interest rates, because we had to bring all that money in. What did they actually do? Oh, this is going to blow your mind. They are so dishonest. And the Fed comes to mind. I'll talk to you about it here in just a second. First, let me tell you about real estate agents I trust. If you've decided to sell your home, you know, and move someplace else, you know, good luck. I mean it's going to be, it could be really good, could be really, really tough. I don't know what the market is around you. I do know this. I started real estate agents I trust.com few years ago, maybe 10. And the last two years have been the best years of any of these real estate agents career. They're having record years now. Why is that? I thought you couldn't sell. No, no, no, you can sell. You just have to be one of the best of the best. We started with the 500 best real estate agents in the country, according to the Wall Street Journal. We learned from them, we modeled them, and then we started looking for others like them. And that's who we're going to turn you on to. There's no obligation. You just, you know, write to us and say, hey, I'm moving from here, selling here, buying here, you know, real estate agent. We'll send you a couple of names. You just, you just try them out, just interview them. I think you'll see the difference. Even in this tough market, they can help you buy or sell a home. The name says it all. Real estate agents itrust.com all right, I thought this weekend, how am I going to explain the Fed and what they've just done? So hear me out. Let's imagine the US economy is like one giant never ending house party that's been raging for years. And the Federal Reserve is the bartender in charge of the punch bowl. The punch bowl, that's liquidity. Easy money flowing through the banks and the markets and the businesses. The more punch you get, and the more punch gets handed out, the more people get sloppy and they're like, I love you, man, you're the greatest. You know, you should do we should buy some stocks. Yeah, that's not a good time to think about anything logically when you are sloppy drunk. So this is when stocks and houses get wildly overpriced, companies borrow stupid amounts for. I got an idea. Let's create energy out of nothing. That's brilliant. I'll invest in that. Here, let's have more punch. A little too much punch and everybody starts to do stupid things, right? You've been there, not enough punch. And everybody's like, this party kind of sucks. I mean, to be around all these people and talk to them. I have to be at least a little tipsy to enjoy myself. Okay, so you want a little bit, but you don't want too much, okay? If you have too little punch, everything grinds to a halt. That in the economy, people lose their jobs, stocks crash, everybody feels like the hangover. And they're like, okay, so what was the Fed trying to do? What was the bartender at this never ending America party doing? Well, back in 2022, they just printed a whole buttload of money. Okay? We're like, you know what? Everybody should have more money. More money for everybody and filling up the punch bowl. And everybody started, you know, breaking the furniture. Everything just got ugly. Then the Fed stepped in, went, okay, oh, yeah, oh, okay, maybe we should sober up just a little bit. So time for everybody to sober up and go home. And so they announced what is called quantitative tightening. I'm tight. Basically what they did is they drained the punch bowl. They said, we're going to get rid of some of the punch bowl and we're going to get rid of all of the excess in there because we put way too much alcohol into this punch. Okay? And they needed to spend down, if you will, they need to get rid of $2.3 trillion worth of bonds that they owned. And they said, we're just going to let them expire. We're just going to let it mature without buying any new ones. Okay? In theory, this drains the money out of the system. Hey, makes you, makes it harder for you to get loans and everything else. Borrowing is more expensive. The bubbles will pop. It forces the economy to sober up the next day. You're like, when, when did I buy pets.com? you were hammered, man. You were hammered. Okay, now pets.com. it's gonna work. It's gonna be great. They don't sell pets. I don't know what they sell, but it's pet stock. Hey. So they were telling us that everybody's getting sober. What did they actually do? Well, during the wild pandemic years, the Fed had poured so much punch that a lot of it ended up in a giant backroom keg called the overnight reverse repo facility. We've talked about these. Now we know what was going on. These are money market funds, big investors, big banks. And they parked about $2.5 trillion in for safekeeping. And they were earning, you know, a safe interest rate from the Fed. Let's just park your money here in the back door of the Fed. By 2023, something had changed. The short term treasury bills, super safe government IOUs started paying higher interest than the keg in the back room. So the big investors said, why are we, why are we, why are, why are we letting all that alcohol sit in the keg? We can have a party elsewhere. So they started draining the backroom keg. 100 to 200 billion dollars every single month. And they poured that money right back into stocks and bonds and lending. So they weren't getting it from the punch bowl? No, there was a, what's the passcode? There was a speakeasy in the back of the Fed. The Fed was draining the punch in front of Everybody else by $2.3 trillion. But the backroom keg was refilling it by $2.5 trillion plus interest. So the net effect here. More punch for everybody. In fact, it's more punch than we started with the first place. About two or $300 billion more party. That's what they did. That's why the Dow Jones keeps hitting new highs. Government keeps funding huge deficits. They don't feel the tightening. You're not seeing the tightening there. You're seeing the tightening with you. The bartender was pretending to cut off the drinks while secretly letting the elite guests go into the back room and get the hidden stash. That's why the whole thing is distorted. Easy money. The extra punch encourages people to do what pets.com people make stupid, dumb bets when they have too much money around. When money is free, when it's expensive and scarce, you pop the bubbles. When it's not scarce, you grow bubbles. Real estate, private equity, everything. And government hooked on cheap bargaining on borrowing. So last week, I saw. I saw something, and I have not been one to say AI is a bubble, because AI is real. And then I saw this story, all birds, AI. And I'm like, wait, I'm not drunk. So I got a qu. The shoe company. It's a tennis shoe company. Okay, okay, okay. Oh, yeah, they tried to make tennis shoes for a while and then went out of business and had to sell the whole thing, but they kept the name. And now they are doing stuff with AI. What? What are they doing with AI? I don't know. It's pets.com, pets.com, pets.com invest now. It's all birds, you know? All birds. Yeah, they made shoes. No, they're doing AI now. Oh, okay. Oh, my gosh. If that doesn't sound like a raging alcoholic talk, I don't think I've heard one. So they avoided the pain of. Of quantitative tightening because they were draining in the back. They didn't clean up anything. You're hurt. You're hurt. But the big guys aren't, and that counts. And they've. They're making the hangover worse because, you know, mathematics, if you don't fix the problem, it's only going to get bigger. So now they've run out of the hidden refill. Now the punch bowl is empty and the. The back room is closed, too. Yeah, it is. It is. So what do they have to do? Quantitative easing? No, no, no. We would never do quantitative easing. Are you kidding me? No, we're not doing that. Okay? This is. I mean, we. Okay, we're gonna buy about $40 billion a month in securities. But this isn't quantitative easing. This is reserve management purchases. They. They. They are not calling quantitative easing. It is reserve management purchases. No, we don't figure that one out. Oh, my God. So what is the point of this? Look out, gang. You've been lied to yet again. You've lost. They win. When I say they, who are they? Who is the Federal Reserve? The United States government. No, it's not. No, it's not. Nope. The Federal Reserve of the five biggest banks in the union. Gee, what are the five banks that don't ever seem to go down or have a problem? They just keep getting bigger and gobbling up all the other banks. Yeah, we can't tell you for sure because nobody knows who they are. Nobody needs to know. The bank is. I don't know. I don't know. I think it's probably pretty important because they're impoverishing all of us and making them bigger and bigger and bigger. This is not the federal government. I mean, we got our own problems with the federal government. This is the federal government covering for them. This the federal government. Nobody has the balls to say, you know what? You're a criminal organization. You're stealing from the American people and it's time. It has to stop. And the Fed more in a minute. I love my mother. And Mother's Day is around the corner. Mom's Mother's Day has you as a way of making you think more about more than just gifts. It makes you think about memories and the sound of her voice in the kitchen. The way that she would laugh at her own jokes and never really get them right. I don't know. Maybe that was just my mom. She never really. It was funny because she could never remember the punchline. And they were very complex jokes anyway. The family vacations, the school plays, the birthdays, you know, everything that mattered. Mother's Day. Right now my wife is with my daughter, who just had her tonsils out at 20. And Cheyenne is like, oh, I think I have a case of the vapors. I just cannot stand anymore. It's been a tough road for her for the last week. And I'm like, come on, Tanya. She's 20. She can handle it. She's like, are you kidding me? I am not leaving my daughter alone with the vapors. That's what mom. That's what good moms do. Dads usually are like me. We suck at those things. Moms make all the difference. 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Right now, 60% off, it's LegacyBox.com records. 10 seconds. So what all of that means to you and your family is there is a difference between a slow leak in your roof and then what happens after you have patched and repatched poorly that slow leak in your roof? I just, I don't want to say I, because I. This is my intellectual understanding and I'm not an expert on any of this, but the stock market has been running on the backdoor. Juice the stock market and it could lose its fuel. And when that happens, you could see your 401k, et cetera, et cetera, and borrowing costs. The good news is with inflation going up, credit cards, mortgages, car loans, everything else going to stay high. It's going to stay high because they never drain the punch bowl. They've been lying to us that that's the biggest thing about this. Donald Trump has been saying, lower the interest rates. Lower the interest rates. No, we can't do that because inflation might come roaring back. By the way, passcode today for the backdoor speakeasy is Trump's a moron. He's never even seen it coming. Oh, my gosh, he should shut them down. He should shut them down anyway. So it's, it could get painful here for a while with your groceries and the rent and everything else. I think because of what the Fed did. And they've been saying they've been fixing the problem from the pandemic printing and they haven't been doing a damn thing. Now, I mean, I'll save that rest of it. I'll Save the rest of it tomorrow. I think you've had it.